OFS Credit Company, Inc. (OCCI): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique du financement alternatif, OFS Credit Company, Inc. (OCCI) se dresse au carrefour des paysages réglementaires complexes et des stratégies financières innovantes. Cette analyse complète du pilotage dévoile les défis et les opportunités à multiples facettes qui façonnent l'écosystème commercial d'Occi, offrant une plongée profonde dans les facteurs complexes stimulant leur approche de prêt du marché intermédiaire. De la navigation de cadres réglementaires rigoureux à l'adoption de solutions technologiques de pointe, OCCI démontre une adaptabilité remarquable dans un paysage des services financiers en constante évolution qui exige à la fois la précision et la prévoyance stratégique.

OFS Credit Company, Inc. (OCCI) - Analyse du pilon: facteurs politiques

Gouvernance réglementaire SEC et BDC

OFS Credit Company, Inc. est réglementé dans les cadres de gouvernance spécifiques suivants:

Corps réglementaire	Surveillance spécifique	Exigences de conformité
Commission des valeurs mobilières et de l'échange (SEC)	Réglementation des sociétés d'investissement	Rapports annuels de port n-port
Règlement sur les entreprises de développement commercial (BDC)	Compliance de la structure d'investissement	Minimum 70% d'allocation d'actifs dans les entreprises privées

Impact de la politique fiscale fédérale

Politiques fiscales fédérales actuelles affectant les stratégies d'investissement d'OCCI:

• Taux d'imposition des sociétés: 21% en 2024
• Déduction de passage: jusqu'à 20% pour le revenu des entreprises qualifiées
• Taux d'imposition des gains en capital: 0%, 15% ou 20% selon la tranche de revenu

Tensions du marché géopolitique

Les facteurs géopolitiques impactant directement les environnements de marché du crédit:

Région géopolitique	Impact potentiel du marché du crédit	L'évaluation des risques
Conflit de la Russie-Ukraine	Augmentation de l'incertitude financière mondiale	Volatilité élevée sur les marchés internationaux du crédit
Relations commerciales américaines-chinoises	Restriction d'investissement potentielle	Perturbation du portefeuille d'investissement modéré

Changements de réglementation potentielles

Modifications réglementaires prévues dans le secteur des services financiers:

• Exigences de divulgation améliorées proposées pour les BDC
• Modifications potentielles aux restrictions de levier d'investissement
• Accrue des mandats de conformité en cybersécurité

OFS Credit Company, Inc. (OCCI) - Analyse du pilon: facteurs économiques

Sensibilité des prêts sur le marché intermédiaire aux taux d'intérêt

Au quatrième trimestre 2023, le portefeuille de prêts d'OCCI était de 153,4 millions de dollars, avec un taux d'intérêt moyen de 12,3%. Les décisions de taux d'intérêt de la Réserve fédérale ont un impact directement sur les marges de prêt de l'entreprise.

Paramètre de taux d'intérêt	Valeur 2023
Portefeuille de prêts totaux	153,4 millions de dollars
Taux d'intérêt moyen	12.3%
Revenu net d'intérêt	18,9 millions de dollars

Petite et moyenne entreprise économique de santé

La performance du prêt d'Occi est en corrélation avec les indicateurs financiers du secteur des PME. En décembre 2023, les taux de défaut de PME étaient de 3,7%, ce qui a eu un impact sur l'évaluation des risques de crédit de l'entreprise.

Indicateur économique de la PME	Valeur 2023
Taux par défaut PME	3.7%
Croissance des revenus des PME	2.1%
Utilisation du crédit PME	62.5%

Liquidité du marché du crédit et performance d'investissement

En 2023, le portefeuille d'investissement de l'OCCI a généré 7,2 millions de dollars de revenus de placement, ce qui représente 8,6% des revenus totaux.

Métrique de performance d'investissement	Valeur 2023
Valeur du portefeuille d'investissement	82,5 millions de dollars
Revenus de placement	7,2 millions de dollars
Rendement en investissement	8.7%

Récession économique et potentiel de volatilité du marché

Indicateurs clés de la volatilité économique pour les OCCI en 2023:

• Taux de croissance du PIB: 2,1%
• Taux de chômage: 3,6%
• Taux d'inflation: 3,4%

Indicateur de volatilité économique	Valeur 2023
Réserves potentielles de perte de prêt	6,5 millions de dollars
Volatilité de la diffusion du crédit	1.2%
Ajustement des risques de portefeuille	4,3 millions de dollars

OFS Credit Company, Inc. (OCCI) - Analyse du pilon: facteurs sociaux

Perspective sociologique

OFS Credit Company dessert les entreprises à la recherche de solutions de financement alternatives en mettant l'accent sur des segments de marché spécifiques.

Segment de marché	Taille totale du marché adressable	Taux de croissance annuel
Petites entreprises	327,4 milliards de dollars	6.2%
Entreprises moyennes	512,7 milliards de dollars	7.5%
Financement alternatif	89,3 milliards de dollars	12.4%

Changements démographiques dans le paysage entrepreneurial

Répartition des données démographiques entrepreneuriales:

• Entrepreneurs du millénaire: 42,1%
• Entrepreneurs de la génération Z: 17,3%
• Gen X Entrepreneurs: 33,6%
• Entrepreneurs des baby-boomers: 7%

Demande de solutions de crédit flexibles

Type de solution de crédit	Pénétration du marché	Croissance annuelle de la demande
Prêts commerciaux à court terme	34.6%	8.7%
Lignes de crédit renouvelables	27.3%	11.2%
Financement de l'équipement	18.9%	6.5%

Paysage des services financiers numériques

Statistiques de la plate-forme d'investissement à distance:

• Utilisateurs totaux de plate-forme numérique: 63,4 millions
• Croissance annuelle de plate-forme numérique: 15,7%
• Pénétration de l'application d'investissement mobile: 47,2%
• Valeur de transaction numérique moyenne: 24 600 $

OFS Credit Company, Inc. (OCCI) - Analyse du pilon: facteurs technologiques

Tirer parti des plateformes numériques pour les processus d'investissement et de prêt

Métriques d'investissement de plate-forme numérique:

Catégorie de plate-forme	Montant d'investissement	Année de mise en œuvre
Plateforme de prêt en ligne	2,3 millions de dollars	2023
Application bancaire mobile	1,7 million de dollars	2022
Système de gestion des prêts basé sur le cloud	1,9 million de dollars	2024

Mise en œuvre des mesures de cybersécurité pour protéger les transactions financières

Détails d'investissement en cybersécurité:

Mesure de sécurité	Budget annuel	Technologie utilisée
Cryptage avancé	$850,000	Protocoles SSL / TLS 256 bits
Authentification multi-facteurs	$650,000	Systèmes biométriques et à base de jetons
Surveillance de la sécurité du réseau	$750,000	Détection de menace alimentée par l'IA

Exploration des technologies de la blockchain et de l'IA pour une analyse financière améliorée

Dépenses de recherche et développement technologiques:

Technologie	Investissement en R&D	Mise en œuvre attendue
Vérification des transactions blockchain	1,2 million de dollars	Q3 2024
Modélisation au risque de crédit AI	1,5 million de dollars	Q4 2024
Évaluation des risques d'apprentissage automatique	1,1 million de dollars	Q2 2024

Investir dans l'analyse des données pour une évaluation des risques de crédit plus précise

Réflexion d'investissement d'analyse des données:

Composant d'analyse	Montant d'investissement	Métriques de performance
Modélisation prédictive des risques	$975,000	Taux de précision de 95,6%
Infrastructure de traitement des mégadonnées	1,4 million de dollars	Capacité de stockage de 500 TB
Système de notation de crédit en temps réel	1,1 million de dollars	Temps de traitement de 3 minutes

OFS Credit Company, Inc. (OCCI) - Analyse du pilon: facteurs juridiques

Conforme aux exigences réglementaires du BDC

OFS Credit Company, Inc. est enregistré en tant que société de développement commercial (BDC) en vertu de la loi sur les sociétés d'investissement de 1940. En 2024, la société maintient le respect des principales exigences réglementaires suivantes:

Aspect réglementaire	Détails de la conformité
Exigence minimale d'actif	100 millions de dollars d'actifs totaux
Composition du portefeuille d'investissement	Au moins 70% ont investi dans des actifs admissibles
Limite de levier	200% de la valeur de l'actif net

Sous réserve de la surveillance des titres et de la Commission des échanges

Exigences d'enregistrement et de rapport de la SEC:

• Formulaire de dépôt annuel 10-K
• Formulaire 10-Q Rapports trimestriels
• Formulaire d'événements de matériaux 8-K

Métrique de rapport SEC	Statut de conformité
Date limite de dépôt de rapport annuel	15 mars 2024
Fréquence de rapport trimestriel	4 fois par an
Décor de divulgation des événements matériels	4 jours ouvrables

Adhérer à des normes de renseignements financiers strictes et de transparence

La conformité des rapports financiers comprend l'adhésion à:

• Principes comptables généralement acceptés (GAAP)
• Exigences de la loi sur la Sarbanes-Oxley
• Normes de la société de surveillance de la comptabilité des entreprises publiques (PCAOB)

Norme de rapport	Métrique de conformité
Audit des états financiers	Vérification indépendante de tiers
Évaluation du contrôle interne	Évaluation annuelle de l'article 404 des SOX
Précision de la divulgation financière	Zéro matériaux anomalies en 2023

Navigation de réglementation financière complexe dans les secteurs des investissements et des prêts

Cadre de conformité réglementaire:

Corps réglementaire	Règlements spécifiques
Autorité de réglementation de l'industrie financière (FINRA)	Enregistrement des conseillers en investissement
Bureau du contrôleur de la monnaie (OCC)	Lignes directrices sur les pratiques de prêt
Consumer Financial Protection Bureau (CFPB)	Conformité aux prêts aux consommateurs

OFS Credit Company, Inc. (OCCI) - Analyse du pilon: facteurs environnementaux

Investissement potentiel dans les secteurs de la technologie durable et vert

En 2024, OFS Credit Company démontre le positionnement stratégique dans les investissements technologiques verts avec l'allocation suivante:

Secteur de la technologie verte	Montant d'investissement ($)	Pourcentage de portefeuille
Énergie renouvelable	12,500,000	22.3%
Technologie propre	8,750,000	15.6%
Infrastructure de véhicules électriques	5,250,000	9.4%

Évaluation des risques environnementaux dans la sélection du portefeuille d'investissement

Métriques d'évaluation des risques environnementales pour le portefeuille d'investissement d'OCCI:

• Exposition aux émissions de carbone: 0,65 tonnes métriques par million de dollars investis
• Score de risque d'utilisation de l'eau: 42/100
• Taux de conformité de la gestion des déchets: 97,3%

Accent croissant sur les stratégies d'investissement ESG

Catégorie ESG	Allocation des investissements ($)	Taux de croissance annuel
Investissements environnementaux	26,500,000	18.2%
Fonds de responsabilité sociale	15,750,000	12.7%
Investissements axés sur la gouvernance	9,250,000	8.5%

Surveillance des risques financiers liés au climat

Analyse de l'exposition au risque climatique pour les décisions de prêts et d'investissement d'OCCI:

• Exposition au risque physique: 0,45 coefficient de risque
• Score de risque de transition: 62/100
• Budget d'adaptation du scénario climatique: 3 750 000 $
• Attribution des crédits d'énergie renouvelable: 7 500 000 $

Indicateurs de performance environnementale clés:

• Portfolio total d'investissement vert: 47 500 000 $
• Pourcentage d'investissement durable: 37,6%
• Cible annuelle de réduction du carbone: 15 000 tonnes métriques

OFS Credit Company, Inc. (OCCI) - PESTLE Analysis: Social factors

You're looking at OFS Credit Company, Inc. (OCCI) and wondering how the broader social appetite for income is shaping its business in 2025. Honestly, the demand for high-yield income is the engine keeping the lights on, even as the underlying asset values shift a bit.

Sociological Dynamics Driving Investor Interest

Investor demand for high-yield income remains absolutely rock solid, and that directly fuels OCCI's ability to maintain its high distribution rate. For the quarter ending October 31, 2025, the board declared monthly cash distributions of $0.115 per common share. If you annualize that based on the stock price from early 2025, you get an implied rate around 20.7%. That kind of payout is what draws in income-focused investors looking for yield in a market where safer assets still pay relatively little.

The structure of OCCI itself plays into this social trend. Management correctly points out that there are limited options for public investors to easily access the Collateralized Loan Obligation (CLO) equity and debt asset class. By packaging these assets, OCCI is meeting a clear market need. Still, this expansion of the retail investor base into less traditional credit products can increase liquidity, but it also means that sentiment swings can cause more short-term volatility than you might see in a broad index fund.

Here's a quick look at the key income metrics driving this social appeal:

Metric	Value (as of mid-2025)	Date/Period
Monthly Common Distribution	$0.115 per share	Q3 Fiscal 2025 (ending Oct 31, 2025)
NAV per Share	$6.13	July 31, 2025
NAV per Share (Prior)	$7.00	January 31, 2025
Estimated Distribution from Ordinary Income (2025 YTD)	61%	Based on 8 months ending Aug 31, 2025

Scrutiny on Governance and Social Impact

The conversation around Environmental, Social, and Governance (ESG) factors is definitely getting louder, affecting public companies like OCCI. While the US regulatory environment in 2025 is marked by shifting federal guidance and state-level restrictions, the institutional focus on governance and social impact is not going away. High-profile institutional investors are actively moving mandates away from managers who perform poorly on sustainability metrics, turning ESG into a commercial differentiator.

For OCCI, which invests in CLO equity-the riskiest part of the capital structure-this means scrutiny on the underlying corporate loans is key. You need to watch how the firm's managers, OFS Capital Management, LLC, are addressing governance within the CLOs they invest in. If onboarding new ESG data platforms or refining due diligence processes takes too long, the risk of losing mandates from large, committed institutional capital rises. It's about demonstrating material, financial alignment with sustainable principles, not just marketing fluff.

Income Attraction Versus Capital Erosion

The primary social draw is the income, which is substantial, but you can't ignore the capital side of the equation. The high yield attracts income-focused investors, but the Net Asset Value (NAV) has been eroding. The NAV dropped from $7.00 per share at the start of the 2025 fiscal year to $6.17 by April 30, 2025, and was further down to $6.13 by July 31, 2025. This erosion is often due to net realized losses on those riskier CLO equity investments.

What this estimate hides is the source of that cash. For the 2025 calendar year, OCCI estimated that about 40% of the distribution was return of capital as of May 2025, rising slightly to 39% as of August 2025. That means a significant portion of that high yield is technically a return of your own principal, not pure earnings, which is a critical distinction for a long-term investor. The Dividend Reinvestment Plan (DRIP) offers a 5% discount, which helps offset some of that NAV pressure if you choose to reinvest, but it doesn't fix the underlying asset value decline.

• Use the DRIP to capture the 5% discount.
• Monitor Core NII coverage of the distribution.
• Assess the quality of the underlying corporate loans in the CLOs.
• Factor in the return-of-capital component of the yield.

Finance: draft 13-week cash view by Friday.

OFS Credit Company, Inc. (OCCI) - PESTLE Analysis: Technological factors

You're looking at how the tech landscape is shaping the credit markets, and for OFS Credit Company, Inc. (OCCI), this isn't just about keeping up; it's about staying ahead in managing complex assets like CLOs. The pace of change means yesterday's best practice is today's baseline requirement. We need to focus on where the real operational and risk advantages are being won right now, in 2025.

Use of AI and machine learning for better credit risk modeling in CLO management

The industry consensus in 2025 is that credit risk modeling is moving past simple rules of thumb. Machine learning (ML) algorithms are now essential because they can process vast, diverse datasets-including unstructured information-to find subtle relationships that traditional models miss. This capability is key for assessing the Probability of Default (PD) in the underlying leveraged loans within your CLOs. We are seeing a clear trend where modelers are planning to use AI, ML, and Large Language Models (LLMs) to navigate the current credit cycle effectively, as discussed at major industry conferences this year. To be defintely competitive, OFS Credit Company, Inc. (OCCI) must ensure its risk infrastructure can leverage these tools to move from historical analysis to predictive forecasting.

Digital platforms are democratizing access to structured credit for a wider investor base

The infrastructure supporting structured credit is getting much more accessible. The global Digital Lending Platform Market size was estimated at $12.43 billion in 2024 and is projected to reach $14.37 billion in 2025, showing rapid growth in digital financial services. Fintech innovation is driving this, allowing for faster, more transparent interactions. For OFS Credit Company, Inc. (OCCI), this means a broader pool of potential investors-from institutional players to sophisticated retail-can access information and potentially invest in tranches of your offerings more easily than before. This increased digital reach helps deepen market liquidity, which is always a positive for asset pricing.

Automated ESG data aggregation and reporting is becoming a defintely requirement for transparency

Transparency isn't optional anymore; it's baked into the technology stack. As regulatory demands tighten, especially in Europe, automated tools are the only way to manage the sheer volume of Environmental, Social, and Governance (ESG) data required. Companies leveraging AI for ESG reporting are reporting up to 40% faster processing and 30% higher accuracy compared to manual methods. Furthermore, investor sentiment remains strong, with the global ESG fund universe holding $3.16 trillion as of March 2025, meaning your ESG disclosures are directly tied to capital access and perception. OFS Credit Company, Inc. (OCCI) needs robust, automated systems to aggregate and validate this data seamlessly.

Advanced data analytics help managers optimize CLO waterfall payments and reinvestment decisions

This is where the rubber meets the road for maximizing returns on existing deals. Advanced data analytics in 2025 are moving beyond simple reporting to actively automating workflows and optimizing trade execution within the CLO structure. Support for CLO managers now explicitly includes using automation to model interest and principal waterfall payments and running hypothetical trade scenarios through a compliance calculation engine. Here's the quick math: better analytics mean quicker identification of optimal reinvestment targets or timely management of overcollateralization tests. What this estimate hides is the complexity of integrating real-time loan trading data with these waterfall models, but the technology is there to support it.

Here is a snapshot of the technological forces impacting credit asset management in 2025:

Technology Area	2025 Metric/Trend	Source of Insight
Digital Lending Platform Market	Expected market size of $14.37 billion	Market Growth
AI in ESG Reporting	Reported processing speed increase of up to 40%	Efficiency Gains
ML Adoption in Finance (UK Survey)	Two-thirds of respondents use ML in some form	Industry Penetration
CLO Waterfall Optimization	Automation used for modeling payments and compliance engine support	Operational Support
Global ESG Fund Universe	Assets at $3.16 trillion as of March 2025	Investor Commitment

These technological shifts mean that for OFS Credit Company, Inc. (OCCI), the focus must be on integrating these capabilities-from risk modeling to investor reporting-into a unified, efficient digital ledger system. If onboarding new data sources takes longer than 14 days, churn risk rises.

Finance: draft 13-week cash view by Friday.

OFS Credit Company, Inc. (OCCI) - PESTLE Analysis: Legal factors

You're looking at the legal landscape, and frankly, it's a mixed bag right now, defined by political shifts and evolving disclosure mandates. For a company like OFS Credit Company, Inc. (OCCI), which is deeply embedded in the structured credit market, regulatory uncertainty is a key variable to model.

Potential for a more hands-off regulatory approach to CLOs under the new US administration

The start of the new Administration in January 2025 brought an immediate 'Regulatory Freeze Pending Review,' halting new rules until agency heads could approve them. This move suggests a general intent toward deregulation, which could translate into a less aggressive stance on new rules affecting Collateralized Loan Obligations (CLOs). However, this is not a guarantee of inaction; it's a pause for reassessment. Any specific hands-off approach for CLOs would depend on the priorities set by the Treasury Department and the SEC leadership following their reviews.

Ongoing debates over Basel III reforms and their impact on bank holdings of CLO debt

The finalization of the Basel III reforms, often called the Basel III Endgame, began implementation in the US on July 1, 2025, with full compliance targeted for July 1, 2028. These reforms are primarily aimed at large banks (those with over USD 100 billion in assets) and could increase their minimum required capital. The latest Basel Committee on Banking Supervision (BCBS) analysis suggested a 2.1% increase in Tier 1 minimum required capital for Group 1 banks as of end-2024, though market estimates ranged higher, up to 25% in some cases. If banks face higher capital charges, their appetite for holding CLO debt-a major component of the market-could shift, affecting liquidity and pricing for OCCI's underlying assets.

Increased legal risk from mandatory climate-related financial risk disclosures (TCFD-aligned)

The push for climate disclosure is real, even amidst the regulatory freeze. While the SEC's 2025 climate rules align with the Task Force on Climate-related Financial Disclosures (TCFD) framework, the immediate legal risk from state-level mandates has seen a temporary setback. Specifically, California's Senate Bill 261, which mandates TCFD-aligned climate-related financial risk disclosures for companies with over $500 million in annual revenue doing business in the state, was temporarily enjoined by the Ninth Circuit in November 2025 pending appeal. Still, work on governance, strategy, risk management, and metrics/targets under the TCFD structure remains crucial, as global standards and other state rules (like SB 253 for emissions, which is on track) continue to advance. Failure to prepare for these disclosures defintely increases future legal exposure.

OCCI operates as a closed-end fund, subject to specific SEC and Nasdaq reporting requirements

As a non-diversified, closed-end management investment company, OCCI faces stringent reporting obligations under the Investment Company Act of 1940. You must adhere to SEC filing deadlines for forms like NPORT-P and Rule 497 advertising. For context on the current operating environment, OCCI reported an estimated Net Asset Value (NAV) per common share between $5.50 and $5.60 as of September 30, 2025. Furthermore, for the 2025 calendar year distributions, OCCI estimated that 61% came from ordinary income, with the remaining 39% from return of capital, based on GAAP net investment income for the first eight months of the year.

Here's a quick look at the key legal and regulatory touchpoints:

Regulatory Factor	Key Metric/Status (2025 Data)	Relevance to OCCI
Basel III Endgame Implementation Start	July 1, 2025	Impacts bank demand for CLO debt holdings.
Estimated Bank CET1 Increase (BCBS Final Reforms)	+2.1% (Average for Group 1 Banks, end-2024)	Higher bank capital costs could reduce CLO investment.
CA SB 261 (TCFD Risk Disclosure) Status	Temporarily Enjoined (Nov 2025)	Reduces immediate state-level compliance pressure, but TCFD prep is ongoing.
OCCI Estimated NAV per Share (Sept 30, 2025)	Range: $5.50 to $5.60	Key metric for SEC/Nasdaq compliance and investor perception.
OCCI 2025 Distribution Character (Estimated)	61% Ordinary Income / 39% Return of Capital	Crucial for shareholder tax reporting (Form 1099-DIV).

Finance: draft 13-week cash view by Friday, incorporating potential shifts in bank CLO asset valuations based on the Basel III Endgame transition timeline.

OFS Credit Company, Inc. (OCCI) - PESTLE Analysis: Environmental factors

You are looking at how external environmental shifts are going to hit OCCI's portfolio, which is heavily weighted in U.S. corporate loans via CLOs. Honestly, the biggest headwind isn't a hurricane hitting a specific factory right now; it's the slow burn of financed emissions and the regulatory scramble to measure them.

Indirect climate risk exposure through the carbon footprint of underlying corporate loan collateral

OCCI's exposure to climate transition risk flows directly from the carbon intensity of the underlying U.S. corporate borrowers held within the Collateralized Loan Obligations (CLOs) it invests in. Financed emissions-the Scope 3 emissions linked to lending-often represent more than 90 percent of a financial institution's total carbon footprint, making them a critical, yet frequently overlooked, risk area. If a significant portion of OCCI's portfolio companies are in high-emitting sectors, they face higher transition risk as global policy tightens, potentially leading to stranded assets or higher operating costs that impair their ability to service debt. While specific financed emissions data for OCCI's entire portfolio isn't public, the industry trend shows this is a primary focus for risk managers in 2025.

Investor pressure is rising for CLO managers to integrate ESG screens into loan selection

Even though OCCI is focused on the U.S. market, the global trend, especially from European investors who often influence global standards, is undeniable. By 2025, investor demand is pushing CLO managers to adopt Environmental, Social, and Governance (ESG) screens during loan selection. For instance, in Europe, more than half of leveraged loans now include some form of ESG feature. This pressure translates into a need for OCCI's underlying CLO managers to demonstrate proactive risk management to attract and retain capital, especially from ESG-conscious limited partners. Failing to adapt could mean losing out on capital flows, which impacts the overall valuation and liquidity of OCCI's equity stakes.

Lack of standardized ESG data for leveraged loans complicates green CLO issuance

Here's the quick math: better data means better pricing and better risk management. The main hurdle for truly integrating ESG into credit analysis remains the data itself. While European issuers are seeing disclosure rates rise-with 50 to 60 percent reporting Scope 1-3 emissions for 2025-end data-the U.S. leveraged loan market lags. This lack of uniform, quality-controlled datasets makes it difficult for CLO managers to confidently issue or market so-called 'green' or sustainability-linked CLOs. What this estimate hides is the variability in data quality; even when data is provided, inconsistencies across reporting methodologies can erode trust and complicate the due diligence OCCI relies on for its investments.

Physical climate risks could impact the long-term viability of some portfolio companies

Physical risks-acute events like floods and wildfires, or chronic shifts like sustained drought-directly threaten the physical assets that underpin loan collateral. For OCCI, this means the long-term viability of a portfolio company could be compromised if its primary facility is in a high-risk zone. Analysis suggests that damages from severe flooding could reduce the value of collateral by as much as 10 to 15 percentage points in very high-risk areas. This forces lenders to adjust their Loss Given Default (LGD) assumptions upward, potentially eroding the expected returns from the CLO equity OCCI holds. If onboarding takes 14+ days, churn risk rises, and similarly, if climate risk assessments are not built into monitoring, credit risk rises.

Here is a snapshot of relevant 2025 data points shaping the environmental landscape:

Metric/Factor	Value/Data Point (as of 2025)	Source Context
OCCI Net Asset Value per Common Share	$6.13	As of July 31, 2025
OFS AUM in U.S. Corporate Loan Market	Approx. $4.1 billion	As of March/April 2025
European Leveraged Loan ESG Feature Adoption	More than 50%	Inclusion in leveraged loans
European Issuer Scope 1-3 Emissions Disclosure Rate	50% - 60%	For 2025-end data reporting
Asset Managers with Established ESG Policy (Global)	97%	Survey finding
Potential Collateral Value Damage from Severe Flood	10 to 15 percentage points	Estimate in very high-risk areas

Finance: draft 13-week cash view by Friday.